Crowdfunding Predictions for 2020
Crowdfunding trends and predictions you should watch in 2020. Facts & statistics projecting the future of crowdfunding.
Did you know? A decade ago, crowdfunding was primarily considered a developed-world phenomenon. However, in recent years crowdfunding as a new financial model has developed rapidly, attracting investors, small-medium-sized enterprises and entrepreneurs.
So what’s in store for crowdfunding in the years to come?
- During the forecast period 2020–2025, growth at CAGR of over 16% is expected to be witnessed by the crowdfunding market. In layman terms this means, crowdfunding has an untapped potential to rekindle and set ablaze financial markets creating numerous jobs in the developing world.
- In 2018 the global crowdfunding market was a meagre $84 Billion, for 2020 it is predicted to cross $100 billion and expected to reach $118 billion by 2021. It is a known fact that crowdfunding campaigns organised for nonprofit causes are the most successful. Therefore having a reason in which people will believe in is of utmost importance. To ensure your crowdfunding goals are achieved, you need to have a well-thought-out campaign. Thus you can conclude that nonprofit causes generate twice the amount of compared to any other industries average if executed strategically.
- A report by startups.com predicts an increasing trend in 2020 with 12% Facebook shares, 3% Twitter shares, and 53% of e-mails share converting to donations. The boost in these numbers is due to the free of cost promotion resources crowdfunding gets through social media platforms. It provides large organisations to have the global reach to audiences allowing their crowdfunding campaigns to make pre-selling market products convenient to access. Simply put, this means social media is the main driving force for crowdfunding growth in future markets.
- Digital assets monetary network predicts equity crowdfunding will widen the investor pool by providing opportunities to those sitting inside their brilliant marble office spires lining famous streets in densely populated metropolitan cities around the world. To add to this, the coronavirus wreaking devastation to small businesses and financial assistance too failing corporations, it seems like crowdfunding is the only viable route that can generate startup funds and build wealth.
- Reward-based, or seed crowdfunding is expected to grow exponentially. It entails small-business financing through which entrepreneurs can call on financial donations from individuals in return for a product or service.
- Earlier startups around the globe worked off most of their efforts hitting dead ends while raising capital for themselves. Even with crowdfunding on the horizon, many startups found themself at dead ends trying to raise the funds they expect. This lul in gaining investors attention was because most startups failed to involve investors. In 2020 and going forth the social media presence and the rave it can create provides an essential tool to startups that strategise campaign launches, investors involvements, press statements.
- Nonprofits follow a similar pattern; however, they are known to take time to catch up to new technology. 2020 has tossed this misconception out the park, and predictions indicate more nonprofits will begin to collect money through the collective wisdom of the crowds. The future of nonprofits seems bright, and this is the best time for a nonprofit organisation to start raising funds on online crowdfunding platforms.
If you are a nonprofit organisation about to start a crowdfunding campaign, consider the following option:
KETTO: rated as Asia’s best online crowdfunding platform allows individuals, NGO’s, nonprofits and entrepreneurs to raise funds through online crowdfunding campaigns. It also provides a zero per cent platform fee which ensures the campaigner “you” get maximum funds at the end of your online crowdfunding campaign.
Crowdfunding has leapt forward, creating an overshadow on traditional fundraising methods that were deeprooted within the reins of the financing system.
Through this blog, we hope we have cleared the haze on what is happening in the market around. These are our predictions of what the future may or may not look like.
What matters most is you and your timely decisions.
Talk to us if you are eager to share your thoughts on what the crowdfunding market looks like. However, for now, head straight to the start a fundraiser button on Kettos online crowdfunding platform and begin crowdfunding today!